Guest Blogpost: Richard Lynch – No medal-winning performance from the coalition

During the past month, Britain’s sporting heroes in Team GB have taken on the world at the Olympic Games and, with performances which exceeded expectations, have delivered our biggest haul of medals for over 100 years. What a contrast with the other Team GB, the Conservative/LibDem coalition, which also promised success but has delivered a shrinking economy, increased unemployment and debt, poorer social provision and the biggest squeeze on the living standards of ordinary people in living memory!

When the coalition took office two years ago, it inherited an economy which had been hit hard by the worst global recession since the 1930s but was recovering and had been growing for five quarters. Instead of consolidating and encouraging that growth, however, it embarked on an unnecessary and unnecessarily savage austerity programme which choked off recovery, led to growth contracting over five of the following seven quarters and resulted in a return to recession.

Yet, when announcing his first budget after taking office, George Osborne said that if he didn’t introduce a harsh programme of tax increases and spending cuts, Britain would face:

‘Higher interest rates, more business failures, sharper rises in unemployment, and potentially even a catastrophic loss of confidence and the end of the recovery. We cannot let that happen. This budget is needed to deal with our country’s debts. This budget is needed to give confidence to the economy. This is an unavoidable budget.’

George Osborne at Conservative Spring Forum 20...
George Osborne at Conservative Spring Forum 2006 in Manchester. (Photo credit: Wikipedia)

Bold words but what has been the outcome? Interest rates have remained low but, as Nobel prizewinning economist Paul Krugman has pointed out, they have remained low in the USA and Japan as well, countries with higher debt levels which didn’t rush into austerity.

On the downside, however, business failures have continued, with almost 4,000 companies going under in the last quarter and retail insolvencies rising by 10.3%. Unemployment remains well above the level Osborne inherited in May 2010, over a million young people are out of work and underemployment has become a major problem with a record 1.42 million people working part time because they can’t find full-time employment. Business and consumer confidence has collapsed to levels not seen since the worst point of the original recession, we have the highest trade deficit in 15 years, national debt is rising and the economy has contracted in the last three quarters, driving us into a double dip recession for only the second time since the Second World War.

And there’s no good news on the horizon either: The Bank of England is predicting a 0.2% contraction in growth this year and probably five further years of economic pain. The National Institute of Economic and Social Research is prediction a 0.5% contraction and the IMF has stated that Britain’s economic outlook is now deteriorating faster than that of any other major economy.

When Britain was facing big economic problems in the 1970s, Dennis Healy said that the first thing to do when you found yourself in a hole was to stop digging. Another smart bloke (either Albert Einstein or Roy Keane, I can’t remember which) said that the definition of insanity was doing the same thing over and over again and expecting different results. But Osborne remains adamant that he will not change course and that there is no Plan B for the economy. Such arrogance from a chancellor and cabinet which have clearly lost the plot is now coming under increasing attack, not only from unions and political opponents but from coalition politicians (one of whom called Osborne a ‘work experience chancellor’), from business organisations and leaders and from the general public. The majority of economists who backed the austerity programme during the 2010 general election are now calling on Osborne to change course. And the IMF, which also previously backed austerity, is now urging the chancellor to think again about cutting back and to focus on growth and on ‘boosting the bargaining power of labour’ to get more demand into the economy.

It’s not as if there is a shortage of good ideas about rebuilding confidence and demand and getting the economy back on its feet again.  For example, stopping or slowing down the public sector and benefit cutbacks (even if only temporarily) would help lower the rate of unemployment, keep people paying taxes and maintain demand in the economy. Borrowing, at our famously low interest rates, to rebuild our creaking infrastructure and to build houses for people to live in, would boost employment in construction and related industries and get people spending again. Putting money back in the hands of ordinary people by cutting VAT (even if only temporarily), ending the freeze on public sector pay and even introducing quantitative easing for people, by creating money to put in the hands of the most needy rather than in the coffers of the banks, would all boost demand and encourage spending.

Indeed PPI refunds by the banks, which totalled £4.8 billion up to May, have already done more to boost the economy than the coalition, because people who have had money refunded have gone out and spent it!

The Olympics showed us that we don’t have to accept mediocrity or assume that we cannot reach new heights. We may have the fight of our lives on our hands but, as the TUC’s Frances O’Grady said, if we keep people together, build confidence and give a sense of hope and vision that things don’t have to be like this, we can build a better world. We can help win that better world by defending our rights in our workplaces and communities. But we can also help win it by mobilising now for the TUC’s national demonstration for a future that works on 20 October. It’s time to stop agonising and start organising!

Richard Lynch is a Dudden Hill resident. He is a retired Unite the Union official and currently conducts voluntary work on employment rights for the Brent Community Law Centre. He also acts as an accompanying representative for the GMB union.

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Stadium Full of Dreams: Reflections of the 1948 Olympic Games in Wembley and beyond

There is currently a free open air exhibition at the Wembley Central Square which brings together memories of the 1948 Olympic Games with the hopes of Londoners for the 2012 Olympic and Paralympic Games.

For more information, visit this LINK

Cropped transparent version of Image:Olympic f...
Cropped transparent version of Image:Olympic flag.svg (Photo credit: Wikipedia)

More Jubilee line misery this weekend

London - Moving Tube London - 550d
(Photo credit: @Doug88888)

More incompetence from the Mayor of London yet again, failing to deliver for Dudden Hill residents who continue to be deprived of a weekend tube service. This is addition to the troubles that commuters faced this morning when the line was part suspended.

I recall a conversation I had on the doorstep with one of my residents who lives on Aberdeen Road who said that she had factored into her life that she doesn’t have a weekend tube service.

We were told that we would have no more weekend closures on the Jubilee Line. With the line not operating between Willesden Green and Stanmore this weekend, this promise has failed to materialise. Boris Johnson has lost his grip on the issue and it’s time that we had a Mayor that truly cares about our transport system.

That is why it is important that Ken Livingstone is elected as the Mayor of London on May 3rd as he is an individual that studies the detail, and takes a hands on approach to the Mayoral office rather than being one that poses for press and photo opportunities.

Government Minister calls for new £60m royal yacht for the Queen while cutting Brent’s budget by £104m

Michael Gove with fellow Education Department Ministerial colleague and Brent Central MP Sarah Teather

The hashtag #TheGoveBoat is trending on Twitter as Secretary of State for Education Rt Hon Michael Gove MP has written a plea to his fellow Tory Liberal Government Ministers to be prepared to use taxpayer’s money to pay for a new yacht for the Queen.

The Guardian mentions that “Various efforts have been made to propose a new royal yacht, but have been rejected on the grounds of cost, estimated in 1997 at £60m.” (LINK TO GUARDIAN ARTICLE)

It is totally unacceptable to be spending £60m on a royal yacht while at the same time cutting Brent’s budget by £104 million and making unprecedented cuts to Brent NHS and Brent’s Police.

Government purchases 9,000 Olympic tickets

2012 Summer Olympics
WikiImage

The BBC is reporting that the Tory Liberal Government has bought 9,000 tickets for the 2012 Olympics in London.

Brent Council was given the opportunity to buy tickets but we thought it was unacceptable to purchase them at a time when we are being forced to cutback on public services. It raises the question of whether we are really all in this together.

It is disappointing that that the Government has decided to purchase such an extravagant amount.

Testimonies Project: Get Involved

The Paralympics logo (far left) and the differ...

WikiImage

Artist Lorenzo Belenguer is organising a community project in Brent and looking to involve local residents.

Twenty local residents are invited to participate in the Testimonies project for the London 2012 Games led by the local artist, Lorenzo Belenguer. Interviews will be carried out with people who witnessed the 1948 Olympic Games and with other (younger) residents about their expectation and emotions towards the upcoming London 2012 Games. These interviews will form an exhibition at the Gallery at Willesden Green and be broadcast around the Wembley stadium area during the summer of 2012.

To show your interest in participating in this exciting project, you only need to send an email to: info@brentartistsresource.org.uk or call to 020 8459 1421 giving your name, full address and why you feel so passionate about the Games. The deadline for this is the 15th of October this year.

See information poster: LINK

Newham Council is 100% Labour

Following the 2010 Local Elections, a special mention is warranted for the Council result in the London Borough of Newham. All sixty, yes, sixty seats have gone to Labour Councillors! See the list of Councillors sorted by Political Party here – LINK

London’s new Olympic Stadium lies in the Newham Borough, and it seems that the people have entrusted Labour to utilise the Olympic Games to bring about benefits to local people. I will strive to do the same in Brent as we are also a host Borough with Wembley Stadium hosting Football events and Wembley Arena hosting Badminton and Rythmic Gymnastics.